Global| Sep 17 2007U.S. Empire State Index Down Sharply This Month
by:Tom Moeller
|in:Economy in Brief
Summary
The index of manufacturing activity in New York State in September. The Index of General Business Conditions fell 10.4 points to 14.70 after its 1.4 point drop in August. A shallower decline to 18 had been expected. The figures are [...]
The index of manufacturing activity in New York State in September. The Index of General Business Conditions fell 10.4 points to 14.70 after its 1.4 point drop in August. A shallower decline to 18 had been expected. The figures are reported by the Federal Reserve Bank of New York.
Since the series' inception in 2001 there has been a 75% correlation between the index level and the three month change in U.S. factory sector industrial production.
Fewer new orders were reflected in the index's decline but the index for employment rose. The shipments index fell a whopping 23.73 points to a record low in negative territory.
Like the Philadelphia Fed Index of General Business Conditions, the Empire State Business Conditions Index reflects answers to an independent survey question; it is not a weighted combination of the components.
Pricing pressure eased somewhat as the prices paid index rose into positive territory for the first time in three month. Since 2001 there has been an 88% correlation between the index of prices paid and the three month change in the core intermediate materials PPI.
The Empire State index of expected business conditions in six months reversed most of its August improvement and fell 1.6% points.
The Empire State Manufacturing Survey is a monthly survey of manufacturers in New York State conducted by the Federal Reserve Bank of New York. Participants from across the state in a variety of industries respond to a questionnaire and report the change in a variety of indicators from the previous month. Respondents also state the likely direction of these same indicators six months ahead. April 2002 is the first report, although survey data date back to July 2001.For more on the Empire State Manufacturing Survey, including methodologies and the latest report, click here.
| Empire State Manufacturing Survey | September | August | Sept. '06 | 2006 | 2005 | 2004 |
|---|---|---|---|---|---|---|
| General Business Conditions (diffusion index) | 14.70 | 25.06 | 15.40 | 20.33 | 15.62 | 28.70 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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